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New Federal Tax Credit Could Expand Access to Catholic Schools

· Confirmed

Faith Desk

In Short: Sister Dale McDonald, vice president of public policy for the National Catholic Educational Association (NCEA), expressed hope that the tax credit would impact enrollment in Catholic schools.

Sister Dale McDonald, vice president of public policy for the National Catholic Educational Association (NCEA), expressed hope that the tax credit would impact enrollment in Catholic schools.

The tax credit allows individuals to claim a dollar-for-dollar tax credit of up to $1,700 each year for qualified contributions, with married couples filing jointly able to claim up to $3,400.

The tax credit is available to households where the prior-year income is no more than 300% of the area’s median gross income, adjusted for family size.

The NCEA recorded that 6.6% of Catholic school students received Title I services during the 2025-2026 academic year.

Greg Richmond, superintendent of the 154-school Archdiocese of Chicago school system, noted that the middle class is increasingly squeezed by inflation, making Catholic school tuition less affordable.

The Archdiocese of Miami is applying to participate in the EFTC through its newly established Catholic Tax Credit Scholarship Fund of South Florida.

The tax credit could provide additional opportunities for students without draining state education funds, according to the NCEA.

The tax credit could help families where a mother does not have to work another job and a father does not have to work two jobs.

The tax credit could also help families where a grandmother or grandfather could contribute to a scholarship fund, though the funds cannot be earmarked for a specific child.

The tax credit could lead to increased contributions to Catholic nonprofits that grant scholarships for K-12 students.

The tax credit could help families where a mother does not have to work another job and a father does not have to work two jobs.

The tax credit could also help families where a grandmother or grandfather could contribute to a scholarship fund, though the funds cannot be earmarked for a specific child.

What this adds

The tax credit could potentially increase the number of students receiving scholarships, though the exact impact remains to be seen.

The tax credit could help families where a mother does not have to work another job and a father does not have to work two jobs.

The tax credit could also help families where a grandmother or grandfather could contribute to a scholarship fund, though the funds cannot be earmarked for a specific child.

The tax credit could lead to increased contributions to Catholic nonprofits that grant scholarships for K-12 students.

Background

Education leaders say the new federal tax credit could expand access to Catholic schools, potentially easing financial burdens on families.

Education leaders say the new tax credit could expand access to Catholic schools, potentially easing financial burdens on families.

What's confirmed

What's still developing

Sources